Bridgestone Corporation Business Report FY ended Dec. 2012
|(in millions of JPY)|
|FY ended Dec. 31, 2012||FY ended Dec. 31, 2011||Rate of change (%)||Factors|
|Current net income||171,605||102,970||66.7||-|
-The Company's financial performance improved year-on-year due to strong sales of tires for passenger cars and light trucks.
-In the truck and bus tire sector, sales of aftermarket tires were lower year-on-year.
-Sales of tires for passenger cars and light trucks were about the same as they were the previous year.
-In the truck and bus tire sector, sales of aftermarket tires were significantly lower year-on-year.
-Sales of aftermarket tires for passenger cars, light trucks, trucks, and buses were significantly lower year-on-year.
-Sales of tires for passenger cars and light trucks were significantly higher than they were the previous year.
-Sales of tires for trucks and buses were higher year-on-year.
- Sales of tires for passenger cars and light trucks were lower than they were the previous year.
- Sales of tires for trucks and buses fell tremendously year-on-year.
Major Contracts-"Ecopia EP150" fuel-efficient tire has been chosen by Nissan Motor for the new Sylphy. (From an article in the Nikkan Jidosha Shimbun on Dec. 25, 2012)
-"Turanza T001" tires as standard equipment for the new Mazda Atenza/Mazda 6. (From an article in the Nikkan Jidosha Shimbun on Nov. 24, 2012)
-“Turanza ER33” tire was chosen as a factory-installed tire on the new Toyota “Lexus LS”. (From an article in the Nikkan Jidosha Shimbun on Oct. 22, 2012)
-"Ecopia EP150" tires have been chosen for installation on Suzuki Motor's new Wagon R Stingray with a turbocharged engine. (From an article in the Nikkan Jidosha Shimbun on Sep. 8, 2012)
-Bridgestone Americas Tire Operations, LLC (BATO) announced that its new 20-inch Bridgestone "Potenza RE97AS" tire is standard original equipment on the all-new 2013 Cadillac "XTS" Platinum Collection luxury sedan. The same high performance tire is also available as an optional upgrade on the Premium Collection version of General Motor's new vehicle in the Cadillac passenger car lineup. The Bridgestone Potenza RE97AS underwent more than two years of development prior to being released, and will be manufactured at BATO's facility in Wilson, North Carolina, the U.S. (From a press release on August 20, 2012)
-"Ecopia EP150" low emission tires have been chosen for installation on the all-new Mitsubishi Mirage scheduled for release on August 31, 2012. (From an article in the Nikkan Jidosha Shimbun on August 3, 2012)
-"Turanza ER33 ECOPIA" tire was chosen by Toyota as an originally equipped tire for its new Lexus GS450h. (From an article in the Nikkan Jidosha Shimbun on March 22, 2012)
-“ECOPIA EP150” tire has been fitted as original equipment on the Toyota Prius PHV. (From a press release on February 3, 2012)
Business Plan-The Company announced its new mid-term business plan called MTP2012, which covers from 2013 through 2017. The company is planning to invest an average of 250 billion yen each year during the term for increasing its capacity to make tires globally. Japanese automakers are now cutting back on production in China due to slumping local sales of Japanese vehicles. The tire supplier, however, is intending to invest heavily in emerging markets, including China, where demand for tires is expected to grow. Bridgestone's CEO Masaaki Tsuya said that the company has no intention to revise the company's China business strategies. He added, “There is no such thing as a risk-free market either in emerging markets or developed markets. The key to success is how you can manage the risks in a balanced manner.” Based on the new mid-term strategy, the company aims to achieve 6 percent in ROA (return on asset), 5 percent in yearly sales growth ratio, and 10 percent in operating profit ratio as early as possible, with goals to raising them even further. (From an article in the Nikkan Jidosha Shimbun on Oct. 20, 2012)
-The Company will reorganize the production network of dies used for tire production with the aim of strengthening competitiveness in the domestic market. Manufacturing of dies requiring quick delivery and dispatching related technical information will be conducted exclusively in domestic facilities, while other types of dies will be supplied from overseas sites in Thailand and China. Domestic production of dies is now being conducted at plants in Tokyo and Kurume, Fukuoka Prefecture. Production at the Tokyo plant will be transferred to the Kurume plant and overseas facilities in Thailand and China. Production at the Kurume Plant will be dedicated to products that require short lead times or advanced technical skills, partly to prevent flow out of technical intelligence from overseas facilities. The transfer from the Tokyo Plant is scheduled to begin in July this year and complete by June 2013. The Company intends to construct a highly efficient and flexible procurement and production structure on a global scale. (From an article in the Nikkan Jidosha Shimbun on May 30, 2012)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
|(in millions of JPY)|
|FY ended Dec. 31, 2012||FY ended Dec. 31, 2011||FY ended Dec. 31, 2010|
New rubber technology for ultra low fuel consumption tires
-The Company and NEDO (The New Energy and Industrial Technology Development Organization) announced on October 22 that Bridgestone has developed a new rubber technology for ultra low fuel consumption tires for passenger vehicles based on NEDO's development program for nano technologies and innovative materials. Compared with existing low fuel-consumption tires, tires made from the new material offer a 44 percent reduction in energy loss and a 26 percent improvement in wearing resistance. Furthermore, the tire supplier is continuing its development activities using the new material, aiming to engineer and bring into the market ultra fuel-efficient tires with low rolling resistance that is 20 percent lower than existing fuel-saving tires. With support of NEDO, Bridgestone has developed a three-dimensional, nanostructure control technology to enable nano-level control of polymer and filler configurations, which are the major materials of tire rubber. In the new technology, polymer blend is limited to 1,000 nanometers, fillers to 100 nanometers, and cross-linked network structure to 10 nanometers. (From an article in the Nikkan Jidosha Shimbun on Oct. 23, 2012)
100 percent sustainable materials
-The Company has developed a concept tire made from “100 percent sustainable materials”, which totally eliminates use of fossil resources. In addition to switching fossil resource-based components such as synthetic rubber and rubber compounding agents to biomass materials, the company also introduced new resources to diversify even recyclable materials such as natural rubber. The company is intending to expand the alliance network on a global basis to commercialize the tire made from “100 percent sustainable materials” by 2020. (From an article in the Nikkan Jidosha Shimbun on Oct. 1, 2012)
Tires made from non-petroleum-based materials
-The Company announced on May 23 its target to introduce automotive tires made from non-petroleum-based materials in the market by 2020. Synthetic rubber and carbon black will be replaced with materials based on biomass. Bridgestone aims to ensure sustainable supply of raw materials by substituting fossil resources with renewable materials. (From an article in the Nikkan Jidosha Shimbun on May 25, 2012)
Russian Dandelion-harvested natural rubber
-The Company announced that recent research conducted by Bridgestone Americas Tire Operations (BATO) has produced promising results indicating that the Russian Dandelion can become a commercially viable, renewable source of tire-grade rubber. Russian Dandelion, the roots of which contain natural rubber, is a perennial plant indigenous to Uzbekistan and Kazakhstan. Bridgestone Americas is taking part in the Russian Dandelion project being led by PENRA - the Program for Excellence in Natural Rubber Alternatives - based at the Ohio State University's Ohio Agricultural Research and Development Center. Bridgestone subsidiaries will conduct additional testing on Russian Dandelion-harvested natural rubber at their technical labs in Akron, Ohio and Tokyo, Japan this summer, with larger scale testing to follow in 2014. (From a press release on May 17, 2012)
Guayule as a commercially viable, renewable source of high-quality natural rubber
-The Company announced it is going to launch an extensive research project in the U.S. to develop Guayule as a commercially viable, renewable source of high-quality natural rubber for automotive tires. The company is looking to introduce the new bio-based material as an alternative to natural rubber derived from the Hevea tree, which has been widely used up until now. Plans are to construct a pilot farm later this year, open its new process research center in 2014, and begin rubber production in 2015. In contrast with Hevea, which is only grown in limited tropical areas, Guayule is a perennial shrub native to desert climates, including those in the southwestern United States and northern Mexico. The new development will enable the renewable source to be planted and processed in the Americas, where demand for tires is expected to climb. (From an article in the Nikkan Jidosha Shimbun on March 12, 2012)
Printing technology for tires
-The Company announced that it has developed a revolutionary new printing technology for tires, which contributes to maintaining high product performance and improving durability without involving any weight increase. Black is the conventional color for tires because of the carbon black-based rubber reinforcement material. Although a tire-coloring technology is already available, production of long-lasting colored tires had been quite challenging because of the rubber’s stretching properties when the vehicle is in motion as well as the antiwear agent used on the tire, which cause discoloration effects. The new printing technology consists of three layers: a layer to prevent the inks’ exposure to the antiwear agent; new and highly durable inks and ozone agents; and a protection layer from external damages. Bridgestone has developed this technology jointly with an ink manufacturer and a printing company. The company is poised to advance development to achieve even higher durability, while looking to bring the original vehicle design technology to the market over the next few years. (From an article in the Nikkan Jidosha Shimbun on January 14, 2012)
Number of R&D Facilities
& South America
R&D Facilities in Japan
|Technical Center||Kodaira, Tokyo|
|Technical Center for Diversified Products||Yokohama, Kanagawa|
|Bridgestone Proving Grounds||Nasushiobara, Tochigi|
|Hokkaido Proving Grounds||Shibetsu, Hokkaido|
R&D Facilities Outside Japan
|Thailand||Nong Khae, Ayutthaya|
-The Company announced that locations for a guayule research farm and associated process research center have been selected in the U.S. The company is looking to introduce the new bio-based material as an alternative to natural rubber derived from the Hevea tree. This project is being accomplished by Bridgestone Americas Tire Operations (BATO). BATO has completed acquisition of a 281-acre agricultural site in Eloy, Arizona, to serve as the base of its agricultural research operation. This research farm, whose groundbreaking is anticipated in the third quarter of 2012, will supply guayule for the company's process research center that is planned for nearby Mesa, Arizona. The process research center will be home to a staff of 32 researchers and technicians and to the process that converts the guayule shrub into tire-grade rubber. Groundbreaking for the research center is planned to take place in early 2013. The facility is expected to be fully operational in 2014, with trial rubber production starting in 2015. (From a press release on August 2, 2012)
|(in millions of JPY)|
|FY ended Dec. 31, 2012||FY ended Dec. 31, 2011||FY ended Dec. 31, 2010|
|Tire business (Consolidated)||223,600||174,700||159,700|
-The Company made capital investments for the following purposes:
- Construct a new tire-plant in Pune, India to manufacture tires for passenger cars, trucks, and buses in response to growing demand in developing countries.
- Increase production capacity at its Tianjin Plant in China producing tires for passenger cars.
- Construct a new tire plant in Vietnam.
- Increase production capacity at its Nong Khae Plant in Thailand manufacturing tires for passenger cars and light trucks.
- In advanced markets, the company launched an expansion project at its Aiken Plant in South Carolina to accommodate strong demand in North America.
-During fiscal year 2012, the Company is planning to invest 315,000 million yen in total, of which 285,000 million yen is allocated for the tire business.
Investment Outside Japan<Hungary>
-The Company will treble its production capacity for passenger car radial tires at its Hungarian plant to meet growing demand for passenger tires in Europe. Its subsidiary in Hungary, Bridgestone Tatabánya Termelö Kft. (Tatabánya Plant), will raise the production capacity for its passenger car radial tires. The plant will increase the daily capacity by approx. 12,000 from the current 6,000 to approx. 18,000 in the first half of 2017, three times the current production capacity. (From an article in the Nikkan Jidosha Shimbun on Oct. 26, 2012)
-The Company's subsidiary in Poland, Bridgestone Stargard Sp. z.o.o., will boost its production capacity of truck and bus radial tires by almost 50 percent in a bid to provide a sufficient and timely supply of high quality products to meet growing demand in the market. The subsidiary will invest around 120 million euros in its Stargard Plant to raise its production capacity. The plant, which now turns out 2,400 tires per day, will increase capacity 56 percent to 3,750 tires by expanding the plant equipment during the second half of 2014. (From an article in the Nikkan Jidosha Shimbun on July 10, 2012)
-The Company held a groundbreaking ceremony for its new, radial tire plant at the Dinh Vu Industrial Zone of Hai Phong City, Vietnam on July 2. The plant will serve as an export base for replacement passenger vehicle tires sold in Europe, the U.S. and Japan. The company has been increasing its capacity to make tires for these markets at it existing facilities in Nong Khae, Thailand and Karawang, Indonesia. By locating a plant in Vietnam, it will raise the capacity further to meet continuing growth in demand. The new facility is scheduled to start operations in March 2014 after the first phase of the construction project is completed. Its production capacity is expected to reach 24,700 tires per day when the whole plant is completed in the first half of 2016. (From an article in the Nikkan Jidosha Shimbun on July 4, 2012)
-The Company established a new company engaged in manufacture, fabrication, and sale of foamed rubber, urethane, and precision electronic components in Kaiping, Guangdong Province, China as of January 4. The new company, Bridgestone (Kaiping) Diversified Products Co., Ltd., which is capitalized at $20 million (approximately 1.7 billion yen), is 100 percent owned by Bridgestone. It is expected to commence production in the second half of 2013 with the workforce of around 400 as of the end of the year. (From an article in the Nikkan Jidosha Shimbun on April 2, 2012)